A Green Energy Revolution: The Inflation Reduction Act‘s Impact on Global clean energy
A small Norwegian town’s struggle to become a green energy hub highlights the broader impact of the U.S. Inflation Reduction Act on the global race for clean energy, reshaping the competitive landscape as industries pivot toward American subsidies.
Jeanna Smialek and Ana Swanson report for The New York Times.
In Short:
- The Inflation Reduction Act, with its substantial subsidies, is luring companies like Freyr from Europe to the U.S., altering the global green energy industry.
- This shift highlights a new era of competitive industrial policy, where nations use incentives to attract green industries, impacting towns like Mo i Rana in Norway.
- Europe and Norway face challenges in keeping pace with the U.S. in the race for clean energy, as they grapple with policy responses and subsidy strategies.
Key Quote:
“We see on the horizon that oil and gas will be going down . . . We have to be part of that transition.”
— Ole Kolstad, the administrative director at Rana Utvikling
Why This Matters:
This development signifies a major shift in global energy policies, directly impacting health outcomes by accelerating the transition to clean energy. It underscores the growing importance of national strategies in the global race for green technology, a key factor in shaping future environmental and public health landscapes.
In 2022, Peter Dykstra asked: Will the Inflation Reduction Act mark the time when fossil fuels begin to fossilize?